Investors Sue SelectQuote (SLQT) After DOJ Intervenes in Kickback Lawsuit

Core Viewpoint - A new securities class-action lawsuit has been filed against SelectQuote, Inc. following the U.S. Department of Justice's intervention in a separate lawsuit, resulting in a 19% decline in the company's stock price on May 1, 2025, and significant investor losses [1][4]. Group 1: Lawsuit Details - The lawsuit, Pahlkotter v. SelectQuote, Inc. et al., represents investors who purchased SelectQuote securities between September 9, 2020, and May 1, 2025 [2]. - The lead plaintiff deadline for the lawsuit is set for October 10, 2025 [2]. Group 2: Allegations Against SelectQuote - The securities complaint alleges that SelectQuote made false and misleading statements by failing to disclose critical details about its business practices, particularly regarding its Medicare Advantage (MA) sales [2][3]. - The DOJ's complaint claims that from 2016 through at least 2021, SelectQuote received tens of millions of dollars in illegal kickbacks and discriminated against less profitable beneficiaries [3][8]. - SelectQuote allegedly directed Medicare beneficiaries to specific insurers' plans based on compensation rather than the customers' best interests [8]. Group 3: Impact on Stock Price - SelectQuote's stock price has decreased over 40% in the last six months, highlighting the significant impact of the ongoing legal challenges on the company's market value [4]. Group 4: Investigation by Hagens Berman - Hagens Berman is conducting an investigation to determine if SelectQuote's revenues were artificially inflated due to the alleged deceptive practices [5]. - The firm is scrutinizing whether SelectQuote's claims of providing "unbiased advice" were merely a public narrative while illegal activities occurred behind the scenes [6].